(Recasts, updates with U.S. trading, adds analyst quote, changes byline, dateline, previous HAMBURG/SINGAPORE)
By Mark Weinraub
CHICAGO, Sept 14 (Reuters) - U.S. wheat, corn and soybeans edged higher on Wednesday, supported by a mild round of bargain buying as well as hopes of increased export demand, traders said.
Wheat notched the biggest gain after touching an eight-day low early in the session on market chatter that crop failures in France could boost buying interest in U.S. supplies.
France harvested 28.5 million tonnes of soft wheat this year, down from a record 40.9 million in 2015, FranceAgriMer said on Wednesday after the country, Europe’s largest grain producer, suffered adverse spring weather that hampered crop development.
Uncertainty about Argentina’s plans for soybean exports lent strength to soy futures.
Argentina’s government is mulling postponing a tax cut planned for next year on soy exports, cabinet chief Marcos Pena said on Tuesday, as a recession in Latin America’s third largest economy eats into fiscal revenue.
Gains in U.S. corn, soybeans and wheat were kept in check by expectations of record U.S. corn and soybean harvest in the coming weeks.
“The U.S. export program had some positive news hit the wires overnight, with France reinforcing their lack of available wheat for export and Argentina waffling on soy export tax cuts, but the beginning of the massive 2016 grain harvest will continue to weigh heavily on the market,” Matt Zeller, director of market information at INTL FCStone, said in a note to clients.
At 10:55 a.m. CDT (1555 GMT), Chicago Board of Trade December soft red winter wheat futures were up 3 cents at $4.04 a bushel.
CBOT November soybean futures were 3/4 cent higher at $9.44-3/4 a bushel and CBOT December corn were 1-1/4 cents at $3.31-1/4 a bushel.
“Soybeans and corn are receiving some support from bargain-buying after their heavy falls this week after the USDA forecast huge U.S. crops,” said Stefan Vogel, head of agricultural commodity markets research at Rabobank.
Markets slumped earlier this week after the U.S. Agriculture Department increased its estimate of a record-large U.S. soybean crop yields by more than expected. The USDA also forecast a record-large U.S. corn crop this year. (Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore, editing by Susan Thomas and W Simon)